Ohio Lawmakers Push Bill That Could Impact Paychecks for Disabled Employees Big Time

Ohio lawmakers are making waves with a new bill that could seriously shake up how people with disabilities get paid in the Buckeye State. The bill aims to phase out the controversial practice of paying workers with disabilities less than the minimum wage—a system that’s been in place for decades. This move isn’t just about dollars and cents; it’s about fairness, dignity, and creating real job opportunities for disabled workers.

Let’s dive deep into what this bill means, who it affects, and what the future could look like for Ohio’s workforce with disabilities.

Ohio Lawmakers Push Bill

Ohio’s House Bill 225 is poised to bring major changes to how disabled workers are compensated. By phasing out subminimum wages and promoting competitive, integrated employment, the state aims to uphold fairness, dignity, and economic opportunity for all workers. While concerns remain about the transition, thoughtful planning and community support can help ensure that disabled employees don’t just keep their jobs — they thrive.

What Is the Bill All About?

The bill, officially known as House Bill 225, is set to change the way disabled workers get paid in Ohio. Right now, thanks to a loophole in the 1938 Fair Labor Standards Act called Section 14(c), some employers can legally pay workers with disabilities less than the federal minimum wage. These subminimum wages can be as low as a couple of bucks an hour, which raises eyebrows and questions about fairness.

Ohio currently has 41 active certificates allowing businesses to pay disabled employees these lower wages. That means many workers are earning less than $3.50 an hour—way below the federal minimum wage of $7.25.

The new bill aims to phase out this practice within five years by:

• Stopping the issuance or renewal of these certificates.
• Requiring employers to create and submit transition plans for moving their workers into competitive, integrated employment, meaning jobs that pay at least minimum wage and happen alongside non-disabled workers.
• Offering a nonrefundable tax credit to companies buying goods or services from nonprofits employing at least 20% disabled workers — incentivizing more inclusive hiring.

Why Does This Matter?

This bill is more than just a number crunching exercise. It’s about equal pay for equal work, respecting human dignity, and creating opportunities for people with disabilities to thrive in the workforce.

Here’s the deal:

• Paying subminimum wages has long been criticized as exploitative and a barrier to independence for disabled workers.
• Advocates say it locks people into poverty and limits their chances to grow professionally.
• On the flip side, some service providers argue that the current system provides jobs that might not otherwise be available, and the transition needs to be handled carefully to avoid job losses.

What’s the History Behind Subminimum Wages?

The 14(c) provision of the Fair Labor Standards Act (FLSA) was created in 1938. Back then, it was thought to encourage employment for people with disabilities who might not be able to perform at the same level as others.

Fast forward to today, this law has become a double-edged sword. While it does create some jobs, many people feel it has outlived its usefulness and is more about keeping disabled workers in low-paying roles rather than helping them grow.

Nationally, there’s a push to end 14(c) certificates. Several states and cities have banned or restricted the practice, and the Biden administration has also signaled support for phasing out subminimum wages.

How Will the Transition Work?

The bill requires employers to submit a transition plan outlining how they will:

1. Move disabled employees from subminimum wages to competitive, integrated jobs paying at least minimum wage.
2. Provide supports and training to help workers succeed in these new roles.
3. Coordinate with nonprofits and other resources to ensure smooth transitions.

Employers have five years to complete this process, providing time to adjust business models, invest in employee development, and partner with organizations that support disability employment.

What Do Advocacy Groups Say?

The Ohio chapter of APSE (Association of People Supporting Employment First) is backing the bill. They emphasize that people with disabilities deserve equal pay and meaningful job opportunities.

APSE Ohio’s position:

• Subminimum wages are a form of economic discrimination.
• Transitioning to competitive employment empowers disabled workers.
• The tax credit is a smart incentive to encourage businesses to hire inclusively.

On the other hand, some service providers worry about the potential loss of jobs if employers don’t have the resources to transition smoothly. The key will be balancing worker protections with realistic business adjustments.

What Does This Mean for Ohio Employers?

If you’re a business in Ohio that employs people with disabilities under subminimum wages, here’s what you need to know:

• You won’t be able to renew or get new 14(c) certificates once the bill passes.
• You’ll need to prepare and submit a transition plan to phase out subminimum wages within five years.
• You can benefit from a nonrefundable tax credit if you purchase goods or services from nonprofits with inclusive hiring.
• You should start planning ahead — review current job roles, employee skills, and explore partnerships with disability employment agencies.

Employers who get ahead of the curve will find opportunities to build a more diverse and inclusive workforce — and avoid disruption later.

What Does This Mean for Disabled Workers?

For people with disabilities currently earning below minimum wage, this bill could be a game changer:

• It promises fair pay for work done.
• It opens doors to more integrated, meaningful employment.
• It pushes for better training and support to succeed on the job.
• It helps move away from the stigma of “less than” in the workplace.

That said, the transition will take time, and support systems must be in place to make sure no one is left behind.

How Can Ohio Residents Stay Informed?

• Visit the Ohio Legislature website to track House Bill 225 updates.
• Follow disability rights organizations like APSE Ohio for advocacy news and resources.
• Check news outlets such as Dayton Daily News for local coverage on the bill’s progress.

Frequently Asked Questions (FAQs)

Q1: What is Section 14(c) of the Fair Labor Standards Act?
A1: It allows employers to pay workers with disabilities less than the federal minimum wage if they get a special certificate from the Department of Labor.

Q2: How many workers in Ohio currently earn subminimum wages?
A2: Exact numbers vary, but Ohio has 41 active certificates allowing such wages. Many workers earn less than $3.50 an hour.

Q3: What is the timeline for the wage changes under the new bill?
A3: Employers will have up to five years to phase out subminimum wages and transition employees to competitive jobs.

Q4: Will this bill eliminate jobs for people with disabilities?
A4: The goal is to create better-paying, integrated jobs, but there is concern some jobs may be lost during the transition if not managed carefully.

Q5: How can businesses benefit from the new law?
A5: Businesses can claim a tax credit for purchasing goods or services from nonprofits employing at least 20% disabled workers.

Q6: Where can I get support for transitioning to competitive employment?
A6: Nonprofit organizations and agencies specializing in disability employment can provide resources, training, and placement services.